The Future of GM

" more what the future GM may look like we're joined by Bob Robb Bob Barnett he is founder of a mark and associates Roth I gotta tell you that for all let. The accusations. About to trampling on the legitimate rights of creditors that we heard from Chrysler it sounds like you could double life for what's coming -- GM credit holders."

" It's a little bit for different gave -- little detail why as you just heard. The bondholders are unsecured when he came to Chrysler in the hedge funds they were security there at the top of the food chain. The bond -- toward the bottom of the food -- so they don't have nearly the amount of leverage. And as you just heard. If this company goes into bankruptcy they run the risk of coming out with zero however if I was representing the bondholders I would recommend them to hold firm. Because right now what are they getting. Very close to zero and so what is their downside you don't think frankly isn't that great. So I think that they should stand firm and not a cave into the administration. Into it. The UAW is not really the UAW -- trust for the pay engineers and try to get a better."

" Deal rob you've been a proponent of chapter eleven bankruptcy I believe you've gone on the record about that Ted because you sort of feel that -- at the US Airways and Kmart. Went into which they were able to at least emerge in some way shape or form but is it is GM in a position. To file a quick bankruptcy and sort of surgically get in and then get out."

" there's a huge difference between. GM. And the airline industry and even Chrysler. But the biggest difference if you look at as an airline industry from the standpoint of the consumer the sort of a one off. I'm going to take an airline flight -- and I'm not. When it comes to Chrysler Chrysler. -- was not doing that well anyway GM is is a huge companies 1% of the economy and one of the things that's most important for. The consumers and GM is the ability to continue going there either to get new cars and more importantly. Warranty claims to get parts of whatever may be so there is a significant difference between GM and any other bank."

" we have rob let me ask you coordinate all the we have seen from Chrysler GM despite the differences. Does all of this send a message to other bondholders and creditors from other corporation -- there there's a chilling message going out throughout the credit system in the United States because of what's been happening."

" Dave I couldn't agree with you more I think it sends a horrible message. -- one of the things that people have to understand is when you when you think of bond holders and quite often in in bankruptcy cases bondholders are large institutions that's not totally the case here. Many of the bond holders are people from middle America people who invested 70000 dollars in bonds thinking that they would get a good solid safe return. And now they find that there's 70000 dollar investment is going to be worth pennies. So really what's happening here is it's not the big entities that are being hurt but it just. Man woman on the street and my when my challenges with the administration is there was talk about wanting to take care of those people were here they seem to be forcing their hand to make those people take the brunt of the problem rob."

" The -- thank you very much -- you -- sooner rather than later June 1 is the deadline we will indeed but again a lot of molecule -- have these things not just big bad wolf."